Joburg’s City Power has approached the courts for an urgent application to declare invalid and of no force and effect the “intrusive and defective” search warrant issued on September 17 the Hawks used to raid the metro power utility’s office last week Thursday.
The raid is linked to an investigation that began in 2024 relating to a purchase order for R67m worth of electricity transformers in 2023, which were allegedly paid for but never delivered.
Part A of the application relates to staying and suspending the execution of the search warrant issued on September 17, and directing that any items, documents, data or devices already seized “pursuant to the warrant be immediately sealed and preserved, and that no access, copying, or analysis thereof be undertaken pending the outcome of Part B”.
Part B is the main relief sought and is about reviewing and setting aside the search warrant, declaring the warrant invalid and of no force and effect, directing the respondents to return “forthwith all items, documents, data, or devices seized pursuant to the warrant”, and interdicting the respondents from using, copying, disseminating or in any way relying on any information, data or material obtained under the warrant.
The respondents include the ministers of police, justice and constitutional development, and Hawks Lt-Col Tlou Martin Nailana.
In her affidavit, City Power’s acting senior manager for legal and research, Spiwe Bembe, said on September 25 Hawks members presented the warrant at City Power’s head office, requesting to conduct mirror imaging of the applicant’s entire server. City Power officials inquired why such “intrusive” mirror imaging of the entire server was necessary.
Mirror imaging is described as the process of creating a complete, exact replica of a system or data set, including the operating system, applications, user settings and all files, to be used as a backup or for disaster recovery. Unlike traditional backups, which copy only individual files, mirror imaging captures the entire structure and state of the original source, allowing for a full system restore to its precise original condition.
Bembe stated in the affidavit that the Hawks members initially advised that their investigation related to two purchase orders, but when pressed for details, they could identify only one. “They were further taken to the IT department, that likewise provided information and access relating to the same purchase order.
“Despite this co-operation, the Hawks members insisted on mirror imaging the entire server, which would have resulted in the wholesale copying of all data, including privileged, confidential and third-party information,” she stated.
“The search warrant is unlawful, overboard, defective, invalid and thus, it must be set aside,” she said.
In March, City Power said it had put plans in place to turn around the entity after it lost R4.9bn — representing 30% — in electricity it purchased from Eskom during 2023/24, with the auditor-general casting doubt whether City Power could continue as a going concern.
In June, City Power and Eskom reached a settlement of R3.2bn over a contentious bill that threatened to plunge SA’s economic and financial hub into darkness, as Eskom threatened to pull the plug on supplying the metro with electricity.
The agreement came after Eskom issued a notice in November, threatening to cut power supply to Johannesburg, home to Africa’s largest stock market and the regional headquarters of many multinational companies, over a contentious R4.9bn bill it said City Power owed.
This spurred electricity minister Kgosientsho Ramokgopa to intervene, with City Power subsequently agreeing to pay R1.4bn to Eskom.
The remaining amount, which was in dispute, was subjected to an independent evaluation to iron out billing discrepancies between Eskom and City Power. The SA National Energy Development Institute (Sanedi) was tasked to lead a technical assessment to determine the accurate amount owed.
Ramokgopa explained at the time that City Power and Eskom had reached settlement of R3.2bn that City Power would pay over four years, however, “there will be relief in payment of that R3.2bn. We have R830m written off [so] that R3.8bn is less the R830m, and that’s a concession that Eskom has made. The expectation now is that City Power continues to maintain the current account.”
Of Joburg’s R89.4bn budget for 2025/26, City Power was allocated R4.6bn over the next three years to stabilise the metro’s grid, among other priorities.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.